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2006 sacramento bee_2

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  • 1. Multi-Media, Customer-Driven Solutions 1
  • 2. A Multi-Media Solutions Company 2
  • 3. Overview • Customer File Analysis • Frequency of store visits • Spending amount • Media channels used • Growth Strategy for ROI • Optimizing Customer Contact and Budget • Current Customers • New Customer Acquisition 3
  • 4. Your CustomersData File Analysis 4
  • 5. PRIZMNELife Stage Segmentation • Regression Analysis performed on 26 different variables • Life Stage proved the best variable for predicting a customer Sacto/ Younger Years Life Stage Group USA Yolo Index - Age Under 45 Younger Years 34.6 30.1 87 - Singles and Couples Midlife Success 13.7 8.8 64 - 30.1% of Sacramento/Yolo Mainstream Singles 11.8 15.9 135 Striving Singles 9.1 5.4 59 Family Life 30.7 37.7 123 Family Life Accumulated Wealth 4.8 4.4 92 - Middle Age 25-54 Young Accumulators 9.2 14.4 157 - Families with Children Mainstream Families 10.3 11.3 110 - 37.3% of Sacramento/Yolo Sustaining Families 6.3 7.6 121 Mature Years 34.8 32.2 93 Affluent Empty Nests 9.7 9.0 93 Mature Years Conservative Classics 10.1 11.2 111 - Age Over 45 Cautious Couples 7.9 5.8 73 - Singles and Couples Sustaining Seniors 7.2 6.2 86 - 32.2% of Sacramento/Yolo
  • 6. Customer Value Changes with Life StageFive life stage segments represent three-fourths of revenue. Cust. Total Customer Value ($) GOLD SILVER BRONZE NULL Total ► Younger Years - Midlife Success 23% 20% 18% 15% 20% ◄ ► Younger Years - Mainstream Singles 11% 15% 16% 19% 14% ◄ Younger Years - Striving Singles 5% 7% 9% 9% 7% ► Family Life - Accumulated Wealth 14% 11% 9% 9% 11% ◄ Family Life - Young Accumulators 8% 4% 3% 2% 5% Family Life - Mainstream Families 5% 4% 4% 5% 4% Family Life - Sustaining Families 1% 1% 1% 2% 1% ► Mature Years - Affluent Empty Nesters 22% 21% 22% 21% 21% ◄ ► Mature Years - Conservative Classics 8% 10% 11% 11% 10% ◄ Mature Years - Cautious Couples 2% 4% 4% 4% 3% Mature Years - Sustaining Seniors 2% 3% 3% 4% 3% 77% 77% 76% 74% 100% Numbers may not add due to rounding.KEY POINTNot all customers are created equal - five life stage segments drive 75% of revenue. 6
  • 7. Amount of Revenue Generated By CustomersGold customers comprise 9% of customers and generate 41% of revenue. 25 12 72 Null 22 Bronze Silver Gold 9 41 10 9 Customers RevenueKEY POINT75% of revenue is generated by 28% of customerscomprised of Gold, Silver and Bronze. 7
  • 8. Frequency of Shopping62% of Gold customers shop two or three times in a week at anaverage revenue per visit of $65. 70% 60% 50% Gold 40% Silver Bronze 30% 20% 10% 0% 1 2 3 4 5 6 Total Avg. Avg. Total Number Total Weekly Weekly Revenue/ Visits/ TIER of Customers Sales Visits Visit Week Gold 4,220 $492,240.00 7,529 $65.00 1.78 Silver 5,029 $283,019.00 6,295 $45.00 1.25 Bronze 4,627 $162,003.00 4,226 $38.00 0.91KEY POINTAs you move up your customer tiers the frequency of shoppingand spending per visit rises. 8 8
  • 9. Customer Location 9
  • 10. Example MAAX Screen: Store AnalysisCustomer Value Tier by Store 2 2 10
  • 11. 311
  • 12. Example MAAX Screen: Store AnalysisMost Valuable CustomersReach 71% with Home Delivered Printand Online, 29% with Mail • 1 in 3 customers are both a Bee subscriber and online registered user Largest portion are customers you can find across two channels 4 4 12
  • 13. Optimize by Media Channel For Return on Customer 13
  • 14. Optimizing Gold Customer CommunicationHarnessing customer attention across platforms will maximize your return on customer: your Gold Tier Customers • 48.7% are Bee subscribers • 36.0% are sacbee.com registered users • 23.5% are both Bee and sacbee.com users 61% reach with The Bee and sacbee.com 51% reach with MVP and sacbee.com MVP Customers Sacbee.com Registrants Bee Subscribers 6 6 14
  • 15. Optimizing Top Customer TiersGold, Silver and BronzeMaximize customer exposure through channels they use G/S/B Percent of Customer HHlds HHlds Total HHlds Spending Spending Dollars $/HHld Direct Mail Channel 6,627 5,385 81% $303,014 $ 56 Print/Online Channels 8,895 6,646 75% $426,362 $ 64 43.3% are Bee subscribers 32.6% are sacbee.com registered users 19.9% are both Bee and sacbee.com users 44% MVP households only 56.0% are MVP households and sacbee.com users Nugget Gold/Silver/BronzeMVP Sacbee.com Registrants Print and Exclusive Bee And MVP Online Users Subscribers 7 7 15
  • 16. High-Revenue Customers in The BeeCustomer Life Stage Relationship to Channel4 Life Stages: Gold Customer Index by Life Stage and Bee Subscriber Accumulated Wealth• Represent 67% of Gold 200 14% Young customer revenue Accumulators 8%• Index high for also being a MidLife Sacramento Bee subscriber Success 150 67% 23% Nuggett Customer . Mainstream Families Affluent 5% Empty Nesters 22% 100 0 50 100 150 200 Mainstream Conservative Singles Sustaining Classics 11% Seniors 8% 50 2% Cautious Couples 2% Striving Sustaining Singles Families 5% 1% 0 Bee Subscriber 8 16
  • 17. Find High-Revenue Customers OnlineCustomer Life Stage Relationship to Channel Gold Customer Index by Life Stage and sacbee Registrant Accumulated5 Life Stages: Wealth 14% 200• Represent 72% of Gold customer revenue MidLife Success• Index high for being a 23% sacbee.com user 72% Nuggett Customer 150 72% . Mainstream Young Families Accumulators Affluent 5% 8% Nugget Customer Empty Nesters 22% 100 0 50 100 150 200 Conservative Cautious Classics 8% Couples 2% Mainstream 50 Singles Striving 11% Singles 5% Sustaining Sustaining Families Seniors 1% 2% 0 sacbee.com Registrant 1 17
  • 18. Customer Communication Channels Life Stages key to Customer and Revenue Volume Affluent Midlife Mainstream Striving Accumed Young Mainstream Sustaining Empty Constive Cautious Sustaining Success Singles Singles Wealth Accums Families Families Nests Classics Couples Seniors Y1 Y2 Y3 F1 F2 F3 F4 M1 M2 M3 M4 Nugget Customer 18% 15% 8% 4% 11% 5% 1% 21% 10% 4% 3% Bee Subscribers 94 62 37 154 92 58 33 180 153 133 102 sacbee.com 119 101 63 201 129 95 56 137 74 46 36 MVP 103 122 137 68 105 125 139 53 69 81 99 Nugget Revenue 20% 14% 7% 11% 5% 4% 1% 21% 10% 3% 3% Channel Index based on Sacramento/Yolo County Customer = % of total customer volume represented by each life stage Revenue = % of total customer spending represented by each life stage Product Index = Calculated as the % of the product profile represented by each life stage, divided by the % of the Sacramento/Yolo market represented by each life stage 2 18
  • 19. Optimized Multi-Channel Delivery Right Customer - Customer profile(s) - Match profile within 3-Miles of your location Right Channel Preferred Channel - Efficient Mix of Mass & Targeted Reach Vehicles - ROP -Insert - MVP -Niche products - Solo Mail -Online Right Time Flexible Timing -Flexibility for the consumer 19
  • 20. Your Customer Online 20
  • 21. Slides NOT includeddue to spec ads revealing customer 21
  • 22. Trade Area Analysis 22
  • 23. Distribution Analysis Process 1. Standardized and appended information to customer file • BTZ – Bee Target Zone • PrizmNE Life Stage • Other demographics – age, income, presence of children, distance to nearest store, distance to assigned store, year built of home, dwelling type, mail order buyer 2. Developed regression analysis to verify correlation and significance of variables 3. Applied cartographic analysis using 3 mile radius 4. Developed a distribution recommendation using cost of distribution in order to maximize reach of current customers and top 5 life stage prospects 23
  • 24. SummaryRecommendations 24
  • 25. Customer-Driven Strategic PlanBusiness succeeds by building, keeping and growing customers.While all customers have value, not all are of equal value.Our strategy covers all customers, yet maximizes opportunity with themost valuable customer segments.The ability to harness customer data across platforms enables youto create more meaningful, integrated messaging. By aligning known mediause with customer value, you are in a unique position to maximize Return-on-Customer.Optimized multi-platform messaging focuses your advertising onmedia and distribution channels utilized by various customer households. Your customer-driven strategy delivers on: WHO: the right customer WHAT: your value equation WHEN: flexible days and times WHERE: in the right geography HOW: through the right mix of channels 25
  • 26. Customer-Driven Strategic PlanWe are proposing use of three primary channels:• The Sacramento Bee• sacbee.com• MVP or Solo MailMixing mass marketing and targetedmarketing vehicles with our geographicallytargeted distribution options providesflexibility for your messaging to reachacross platforms and into the householdsthat drive your business.Knowledge of the current and prospective customersallows us to carry a highly effective and efficientlybalanced program to the marketplace. 26